Gogo Inc. (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, has implemented an integrated business plan (IBP) designed to improve the company´s operational and financial performance, the company said.
The IBP, branded as Gogo 2020, transforms Gogo´s business model and is intended to significantly reduce its cost structure, improve quality, drive revenue, streamline business processes and prudently strengthen its balance sheet.
Gogo 2020 resulted in the following:
-Targeting Free Cash Flow break-even for the full year 2020;
-Targeting significant annual EBITDA growth each year in our plan, reaching over $200 million in 2022;
-Continuing to build on the significant improvement in 2Ku performance metrics, including availability of over 97% in June, by enhancing product and service quality
-Maintain cash capex reduction in 2018 with further material reductions in 2019
-Materially reducing upfront equipment subsidies for airline contract;
-Reducing total operating spend in Gogo´s Commercial Aviation “CA” business (excluding satellite costs) by nearly 20% by the end of 2020
-Reducing total cash burn in 2019 by over $100 million from expected 2018 cash burn and by a further $100 million in 2020
-Reviewing multiple options to address our outstanding convertible debt before it becomes current in March of 2019
-Renewing focus on third-party payer revenue streams to better monetize existing connected aircraft
-Focusing on improving the range of user experiences
Reviewing a range of attractive strategic alternatives, including opportunities suggested by various strategic and financial parties, with the goal of maximizing shareholder value.
Gogo is an Inflight Internet Company, providing broadband connectivity products and services for aviation.